Wendy's Says Certain Subsidiaries Commence Refinancing Transaction

(RTTNews) - Wendy's Co. (WEN) said Wednesday that certain of its subsidiaries commenced a refinancing transaction, which will consist of the refinancing of a portion of their outstanding securitization debt with a new series of securitized notes under the existing securitized financing facility.

Wendy's said its subsidiaries plan to issue at least $850 million of new fixed rate senior secured notes - the Series 2019-1 Class A-2 Notes.

The subsidiaries plan to use the net proceeds from this sale in addition to cash on the balance sheet, for the repayment of the Series 2015-1 Class A-2-II Notes as well as to pay related transaction fees and expenses.

As of March 31, 2019, the principal balance of the Series 2015-1 Class A-2-II Notes outstanding was about $869 million.

In addition, Wendy's subsidiaries also intend to enter into a new $150 million variable funding senior secured note facility, which will replace the Series 2018-1 Class A-1 Notes.

Wendy's anticipates consummation of the offering to close by the end of the second quarter of 2019.